Successful ending of the second IMF agreement revision

The Board of executive managers at the International Monetary Fund (IMF) made October 23, 2015, decision on successful ending of the second consideration of current pre-cautious agreement with the Republic of Serbia, the National Bank of Serbia communicated.

According to IMF, Serbia continues achieving good results in implementation of the agreed economic program. Economic growth was generated despite the implementation of strong fiscal consolidation measures and deficit of the current account of payment balance is at the sustainable level. It was stated that further decisive implementation of agreed economic program is key for public debt sustainability, strengthening of residence of financial sector and competitiveness of Serbian economy.

Fiscal results are encouraging and enable framework for implementation of measures which will direct public debt trends decline. It is necessary to consider the room for salary increase in public sector and pensions in the context of headcount number rationalization in public sector. At the same time, it is necessary to improve implementation of capital investments for stimulating economic growth

IMF estimates that further successful implementation of the program in structural reforms is key for decrease of fiscal risks and boost of competitiveness and growth, it was communicated.